• Cointelegraph analyst Marcel Pechman explains how the U.S. Federal Reserve’s interest rates impact the crypto market, and shows why trusting charts and indicators can be misleading.
• He also dives into the correlation between Bitcoin and the stock market, as well as volatility indicators such as the VIX.
• Lastly, he provides real-life examples from gold markets, Tesla stocks and news articles to explain how to interpret complex instruments in a straightforward manner.
Introduction
Cointelegraph analyst and writer Marcel Pechman explains how the U.S. Federal Reserve’s interest rates impact the crypto market on his show Macro Markets, which airs every Friday at 12 pm ET on Cointelegraph Markets & Research YouTube channel.
Impact of High Interest Rates on Crypto Market
High-interest rates are detrimental to risk assets; however investors usually price today’s action on how the economy will be in six months or longer. Pechman shows this by literally adjusting timeframes and scales to match his school of thought, demonstrating that anyone can pick timeframes and scales that favor their biases and opinions.
Correlation Between Bitcoin & Stock Market
Pechman then talks about the correlation between Bitcoin and the stock market — especially when investors fear a recession is coming or cost of capital favors fixed income — followed by a deep dive into volatility indicators including the stock market volatility index (VIX). He explains that most common volatility metrics are backward looking even more complex instruments like VIX indicator should be interpreted with caution.
Real-Life Examples
To close out Macro Markets show, Pechman applies his expert knowledge to explain real-life examples from gold markets, Tesla stocks and news articles in a straightforward non-technical manner so viewers understand how traditional financial events effect day-to-day crypto activity better.
Conclusion
Make sure to subscribe to Cointelegraph Markets & Research YouTube channel if you’re looking for exclusive content provided by leading crypto analysts and experts; join us at Macro Markets every Friday at 12:00 pm ET!